As the economy falls off a cliff, the earnings reports of the economically sensitive railroads are an interesting lot to watch.
Canadian National Railway (CNR) reported earnings recently and beat expectations by posting a 24% rise in comparable earnings. The falling $CAD vs. the USD as well as lagging fuel surcharges helped. CNR also rewarded shareholders by raising the dividend by 10%. CNR now yields 2.3%.
Canadian Pacific Railway (CNR) reported earnings as well and beat expectations by posting a 4% drop in earnings after items. Revenues increased 9% while expenses increased 13%. Currency changes helped CP's results as well. CP now yields 2.6%.
Both companies are expecting a very rough 2009 and are trimming their capital budgets.
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